What Is a Dental Membership Program

1. WhatIs a DentalMembershipProgram? A dentalmembershipplan (ordentalmembershipprogram)islikeasubscriptionservice for your patients. It allows patients to pay a set fee for a membership “package” that includesannualcleanings,x-rays, andpreventativeservices.Inaddition,it offers discountedelectiveorrestorative care procedures.Wecan think about ifasadiscounted fee-for-serviceplan. Dentalcostsare risingrapidly forpatients. In response,dentalmembershipplans arean innovativewaytomakedentalcaremore affordableforthosewithout insurance.Even patientswithinsurancecanbenefitbecausemembershipplanscancombatsharplyrising co-pays and allow patients to pay directly (at a discount) for procedures that aren’t insured.In thisarticle, wewalkyouthrougheverythingyouneedtoknowaboutdental membershipplans. SkytaleGroup offersindustry-leadingDSO consulting services.Learnmoreabout how we helpdentalclientsstart, grow, and selltheirpractices. Howdodentalmembershipplanswork? Many of ourDSOclients have usedadentalmembershipplanbecause they can attractnew patients,keepthemcomingback intothe office,andmake theirservicesmore accessible. Theycan beleveraged asamarketingtactic, andit’sawin-winforpatients. In addition,Byrdadattorecentlysharedanotherprimary benefit:these plans eliminate the need of a “for-profit insurer as a middle-man in the transaction between the patient and theirprovider.” Whatdoesadentalmembershipprogram typically include? Here’san exampleofatypicalmembershipplan:

2. Tworoutinedentalcleaningswith fluorideperyear • Allx-raysrequiredforservicesincluded • 15%discountonall otherservicesandproducts • Emergencyexams included in membership fee • Which dental practices benefit from a membership plan? • Practices with 10% or more patients who are out-of-network or without dental insurance benefitsare bestsuitedforamembershipplanbecause they attractpatientswhoknow they wouldbe payingout-of-pocket.As“members,”thosepatientsstay inthe practicefor bothincludedanddiscountedservices. • Dentalmembershipplans work best forgeneraldentists ratherthanspecialists, pediatric dentists,ororthodontists. That’sbecause generaldentiststypically offerrepeatable services,likehygieneappointmentsandX-rays,thatpatientscan expect toneedyearafter year. Howto implementasuccessful dentalmembership programin yourpractice: If you’rehopingtoimplement adentalmembershipplan in yourpractice, herearesome thingstoconsider: Servicesoffered. Tobegin, considerwhat servicestoincludeinthe plan.Practiceswhoofferamembership plan oftenwrestle withhowtoprovidebenefitstopatientswhoneedperiomaintenance services every three to four months. This can be addressed in two ways. First, by explaining toperiopatientsthattwoof theirmaintenanceappointmentswouldbeincludedin the

3. membership. The other two would be provided at the discount percentage the membership offers for “all other procedures.” The “discounted” appointments would be on the 2nd and 4th appointments, where the “included” appointments would be the 1st and 3rd appointments. Theotheroption toaddressthis issue isbyaddinga“perio-specific”membershipwithits ownprice. Discountedrate. Thisrateshould notbetooaggressive as togiveawaymorethannecessary.Itshouldbe just enoughtoincreasecase acceptanceand“stickiness” of thepatient. Thisis typically accomplished with a 15-20% discount. Are there niche services your office provides that youwishtoexcludefromthemembershipplan? Besuretonote thosein any digitalorprint media. Feestructure. AsDSOconsultants,wepreferbuildingthemembershipfeesbasedonthenumberof household memberson theplan. Here’soneway todoit: • First, buildthemembershipfeeasapproximately30%oftheyearly UCRfeesfor anew • patientseen in hygiene. • Second, ifthe total feesfor a newpatientto havetwo hygiene appointmentswithfluoride andall x-raysovera12-month periodwas$825,30%wouldbe$247for asingle-person • membership. • Finally, formulti-personmemberships, discountingeach member byapproximately $50isa notableeconomy patientsrecognize.And,ithelpsthem to seeadditionalvalue.

4. Communications. When you create a membership plan for your organization, be sure to tell people about it. Creating a trifold brochure is a great place to start. Next, add posters in treatment rooms, content on yourwebsite,andevenpostson socialmedia. Detailstoinclude: • Membershipapplication(whereandhowto apply) • Benefitsyouprovide • Number ofmembersperhousehold • Beginningandendingperiods of membership • Writeitona singlepage that’seasytoread.Nolegalese! • Dental Membership Regulations • Thereare fewregulations regardingdentalmembershipprograms, typicallymanagedby thestate insuranceboards. This wasdue tolobbyingby insurance companiestoassure dentistswerenot creatingtheirown insuranceprograms. • Hereare afewitemstokeepinmind: • First, checkwithyourstate insuranceboardtobesure youdon’t needtoregisteryour membershipprogram. If youneedtoregister,it’s usually aquickprocess.Providethe membershipdetails, marketingmaterials, andlocationofyouroffice(s). The boardmay chargeasmallfeewhenyousubmit yourapplication. • Regulations willfocus onhowthe membershipplan isadministered, theflow of funds, and membershipfees.Toavoidissuesintheseareas,neverrefertothe membershipprogramin writtenorconversationalformas“youroffice’sinsurance program.”The membershipfees collectedarenot “premiums.”Thereshouldneverbe a“deductible” forbenefitsofthe

5. membership. Mentionof premiums ordeductibles willberedflagsforanyinsuranceboard audit. Lastly,if youprefertooutsourcethecreation,administration, andcollection of membershipfees,thereare options. Thereare insurancecompanieswhohavecreated membership plans for dentists and other healthcare environments. Or, there are also vendorswhoare close tothe dentalindustrywhocan buildthe membershipprogramon your behalf.They willeven train yourteam. ImplementaMembership ProgramwithaDSO Consultant Dentalmembershipprogramscanaddvalue because theycreate stickinesswithyour patients.SkytaleGrouphelpsgroup dentalpracticescreatemorevaluefortheir organizationthroughstrategicconsultingandfinancialadvising. Learnmore aboutdental membershipprogramsorexplore howtheSkytaleGroupcanhelpyougrowyourdental empire. Contact us.